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Impact of Increase in Dollar Exchange Rate on the Cost Price of Fuel Importation

Impact of Increase in Dollar Exchange Rate on the Cost Price of Fuel Importation

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Impact of Increase in Dollar Exchange Rate on the Cost Price of Fuel Importation

A change in exchange rates can have a considerable effect on the price of importing fuel. An increase in the value of the dollar reduces the buying power of a certain amount of that money. Since the cost of oil is typically quoted in U.S. dollars, this might increase the price of importing fuel.

The cost of crude oil is one of the first things to go up when the value of the dollar goes up. The price of crude oil, a key component of fuel, is very sensitive to fluctuations in the value of the dollar. Costs associated with importing gasoline rise when the dollar increases because more of the local currency is required to buy the same quantity of oil.

The transportation and logistical costs associated with importing petroleum might also be affected by a higher currency. The ultimate price of imported gasoline is heavily influenced by transportation expenses, which is why so many nations must rely on imports to satisfy their energy demands. Shipping expenses, which are often paid in dollars, might rise in tandem with the value of the dollar. The cost increases are reflected in higher petrol prices for drivers.

The price of refining imported fuel might also be affected by the strength of the dollar. It is common practise for refineries to pay in dollars for crude oil and use local currency for all other costs associated with the refining process. The cost of acquiring crude oil, which might be passed on to refining prices, rises when the value of the dollar rises. The price of importing petroleum rises as a result of these added expenses, which are ultimately passed on to consumers.

It’s vital to keep in mind that a rise in the value of the dollar can have varying effects on the cost of importing fuel, depending on variables including the country’s dependency on imported fuel, the exchange rate, and the state of the economy. Fuel prices are affected not just by market forces but also by government regulations and subsidies, which can lessen or amplify the effect of a dollar rise.

 

 

 

 

 

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Impact of Increase in Dollar Exchange Rate on the Cost Price of Fuel Importation

 

 

Click here to Get The Complete Research Project Chapter 1-5


RESEARCH PROJECT CONTENTS
CHAPTER ONE - INTRODUCTION
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research Hypotheses
1.5 Significance of the study
1.6 Scope and limitation of the study
1.7 Definition of terms
1.8 Organization of the study
CHAPETR TWO – LITERATURE REVIEW
2.1. Introduction
2.2. Conceptual Framework
2.3. Theoretical Framework
2.4 Empirical Review
CHAPETR THREE - RESEARCH METHODOLOGY
3.1 Research Design
3.2 Study Area
3.3 Population of the Study
3.4 Sample Size and Sampling Technique
3.5 Instrument for Data Collection
3.6 Validity of the Instrument
3.7 Reliability of the Instrument
3.8 Method of Data Collection
3.9 Method of Data Analysis
3.9 Method of Data Analysis
3.10 Ethical Considerations
CHAPTER FOUR - DATA PRESENTATION AND ANALYSIS
4.1. Introduction
4.2 Demographic Profiles of Respondents
4.2 Research Questions
4.3. Testing of Research Hypothesis
4.4 Discussion of Findings
CHAPTER FIVE – SUMMARY, CONCLUSION & RECOMMENDATIONS
5.1 Introduction
5.2 Summary
5.3 Conclusion
5.4 Recommendation
REFERENCES
APPENDIX


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